WaMu up for auction
- 17.09.2008
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Market Watch is reporting Washington Mutual is for sale via an auction being conducted by Goldman Sachs. The shopping began a few days ago according to sources at Goldman.
This is the only thing they could do, or else they will go bankrupt, leaving the nation’s largest S&L in the hands of the …. government!
More as this develops, of course.
From Market Watch:
Washington Mutual, the nation’s largest thrift, has put itself up for sale, the New York Times reported on Wednesday, citing unidentified people briefed on the matter.
Goldman Sachs, which has been hired to advise WaMu, started an auction several days ago, the newspaper reported.
Potential bidders that Goldman has talked to include Wells Fargo, J.P. Morgan Chase, and HSBC the paper said.
From the New York Times:
The unsurprising announcement comes as the bank, which has suffered badly from losses on mortgages it had made, continues to stumble. Shares in Washington Mutual fell nearly 10 percent on Wednesday to $2.09; they have plunged 94 percent over the last 12 months. This week alone, investors have been frightened by Standard & Poor’s cutting of the bank’s debt rating to junk.
While the bank has a strong deposit base, the uncertainty of the markets and the increasingly poor housing market have increased concerns about Washington Mutual’s outlook. The bank plunged into the option adjustable rate mortgage business.
